Retirement Planning

It’s never too late to start saving.

Perhaps one of the greatest financial challenges you will face in your lifetime is preparing adequately for your retirement. Can you afford to retire? How will you fund your retirement? How will you ensure your money lasts as long as you need it? What unexpected events may occur before and during your retirement that can derail your plans for the future? What do you need to do differently once you are actually in retirement?

It is never too early to begin. Things to consider:

  • Assess your current financial situation—You can't prepare adequately for the future if you don't fully understand your current financial picture. Take inventory of what assets do you have, what retirement benefits are you entitled to?
  • Determine your retirement lifestyle—It makes sense to determine when you might like to retire, even if you are currently very young. You can always modify your decisions later in life, but you might not reach your goal if you wait too long to start saving.
  • Make retirement savings your top priority—No matter what your current age, retirement savings should be a top budget priority.
  • Contribute to your 401(k) plan—Even if you already have a retirement plan or you are very close to retirement, consider investing in your employer's 401(k) plan. Because you can invest in these plans with pretax money, you will cut your current tax liability.
  • Realize retirement planning is a lifelong process—Saving for retirement is just one part of the equation. You also need to plan for the risks that can affect your retirement years, determine which assets to use and when, and prepare for how you are going to meet your retirement income needs, regardless of how long you live.

Funding Solutions
Traditional methods for funding retirement, such as Social Security and other retirement benefits, may not meet all your financial needs—especially when people are living longer and retiring at an earlier age. If available, taking advantage of your company's 401(k) is a good start. Additional retirement funding solutions which may include:

  • A Traditional or Roth IRA
  • Mutual funds or other investments
  • Variable annuities
  • Life insurance
  • Advisory accounts

Be prepared. Don't procrastinate.
Preparing for your financial security needs encompasses more than saving for your retirement. To be certain that the funding for your retirement will be available when it is needed, you should also consider other potential life events that could affect your goals – events such as:

  • The unexpected death of you or your spouse
  • A disability or illness that could prevent you or your spouse from working
  • The impact of a long-term care event

With adequate life insurance, disability income insurance, funding for long-term care, and other financial products, you can protect yourself from having to tap into your savings to cover other expenses.

Lastly, don’t procrastinate. Retirement may feel a long way off, but don’t wait until the last minute to start saving. Take advantage of time to plan for the retirement you really want.

You should carefully consider the investment objectives, risks, expenses and charges of the investment company before you invest. Your Northwestern Mutual Investment Services Registered Representative can provide you with a mutual fund prospectus or a variable annuity contract and fund prospectus that will contain the information noted above, and other important information that you should read carefully before you invest or send money.

Typical Costs
In choosing an annuity product that will best serve your needs, it is also important to take the costs into consideration.  Fixed Annuities: Typically, there are no additional charges or fees because the expenses have been calculated into the interest rate the insurance company pays. Variable Annuities: As is the case with all investment products, expenses and fees apply and vary from insurance company to insurance company. The most common are mortality and expense fees, portfolio fees, and contract fees.

Withdrawal charges typically apply in the early years of a deferred fixed or variable contract and are deducted from amounts you take out. The cost for any available optional benefits and riders included with the annuity would be added, in addition to the fees previously mentioned.

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

*All securities are offered through Northwestern Mutual Investment Services LLC, (NMIS), Suite 300, 611 E. Wisconsin Avenue, Milwaukee, WI 53202, 1-866-664-7737. Member FINRA and SIPC. NMIS is wholly owned by Northwestern Mutual.

Mutual Funds, Unit Investment Trusts, and Money Market Funds are offered and sold by prospectus only. An investment in the Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Money Market Fund seeks to reserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.